Indonesia Wishes to Become Export Base for Honda

Tokyo (ANTARA News) – Indonesia urged Japans Honda Motor Company Ltd. to make it the export base for its products to boost its non- oil/gas export performance, which it aims to increase by 300 percent in five years.

“The meeting with Honda Motor Company Ltd. was aimed at explaining our vision for the future and asking Japan to shift its export base to Indonesia,” Director General for International Trade Cooperation of Indonesia Bachrul Chairi said here on Wednesday.

He added that at the meeting between Indonesian Trade Minister Rachmat Gobel and Chairman of Honda Motor Company Ltd. Fumihiko Ike, the Indonesian government had asked Japan to play a bigger role to help the nation increase its exports.

“We have asked Honda to play a larger role in increasing our exports and make Indonesia the export base for its products in the future. They will give it serious consideration,” Chairi stated.

The director general further noted that with a positive response from the Japanese company, Indonesia should be able to bring in better improvements to the country, especially with regard to transparency, licensing procedures, and infrastructure.

“They seemed to have a favorable response towards the measures the government has been taking, especially with regard to infrastructure development, transparency, and bringing in improvements in licensing,” he explained.

Chairi pointed out that of the 18 million units the motor company produced in a year, five million of them were made in Indonesia.

To increase exports, he added, production in Indonesia needs to be increased as well.

“So they plan to promote Indonesia from its tier 3 supplier status, i. e. shift its components industry to the country. Essentially, the existing capacity will be used, but they will add to it if found necessary.”

However, the most important factor to pay heed to is developing good infrastructural support in the country as competitiveness would increase if investment is supported by good infrastructure.

Trade Minister Rachmat Gobel and his entourage, visiting Japan from January 18 to 22, are scheduled to meet with Japanese Prime Minister Shinzo Abe and Economic, Investment and Trade Minister Yoich Miyazawa.

Gobel is also scheduled to hold bilateral meetings with officials from big Japanese companies that have cooperated with Indonesia and others, as well as with the Kansai Economic Federation (Kankeiren) and the Japan Business Federation (Keindanren).